Item Description:
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Neg Agmt with MN Housing Finance Agency for the MN Cities Participation Program, 01/01/26-12/31/26 (no county cost)
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Resolution:
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BE IT RESOLVED, that the Executive Director be authorized to negotiate an Agreement with the Minnesota Housing Finance Agency for the Minnesota Cities Participation Program to support first-time homebuyer loans in suburban Hennepin County during the period January 1, 2026 through December 31, 2026; and that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreement and related documents on behalf of the Authority.
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Background:
The Hennepin County Housing and Redevelopment Authority (HCHRA) has participated in the Minnesota Cities Participation Program (MCPP) since 1997. Through the MCPP, the Minnesota Housing Finance Agency (Minnesota Housing) sells mortgage revenue bonds on behalf of city and county housing and redevelopment authorities, port authorities and economic redevelopment authorities (with the exception of those receiving direct entitlement bonding authority; i.e., City of Minneapolis); the proceeds of these bonds provide below-market interest rate home mortgage loans for low and moderate income first-time homebuyers.
Per state statute, Minnesota Housing uses a population-based formula to determine the HCHRA's estimated allocation. Participating private mortgage lenders originate home mortgage loans, which Minnesota Housing buys in accordance with the Minnesota Housing Mortgage Program Procedural Manual. MCPP mortgages must meet the requirements of standard mortgage insuring and guaranteeing entities, mortgage industry accepted underwriting standards, and state and federal law governing mortgages provided through the issuance of mortgage revenue bonds.
Borrower income limits apply (currently $132,400 or less for a one-two person household). Maximum purchase price for a property is currently set at $515,200.
Minnesota Housing provi...
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